November 02, 2015 — Austin
Texas home sales and prices continued to rise in the third quarter of 2015, while monthly housing inventory held steady, according to the 2015-Q3 Texas Quarterly Housing Report released today by the Texas REALTORS®.
“Overall, statewide numbers continue to be strong,” said Scott Kesner, chairman of the Texas REALTORS®. “Last year fell just short of being the best year ever in Texas real estate, but 2015 has shown consistent year-over-year gains in both home sales and prices. At this current pace, 2015 could very well surpass 2007 as a record year for Texas home sales.”
According to the report, Texas home sales rose 7.8% year-over-year to 91,704 home sales in 2015-Q3. Texas home prices saw similar gains, with median price rising 7.7% year-over-year to $199,900 in 2015-Q3.
Monthly housing inventory in Texas was 4.0 months in 2015-Q3 compared to 3.9 months in the same quarter last year. While housing inventory remains firmly within a seller’s market, it appears to be holding steady despite rising housing demand. The Real Estate Center at Texas A&M University estimates that a monthly housing inventory between 6.0 and 6.5 months is a level at which supply and demand for homes is balanced.
Jim Gaines, Ph.D., chief economist with the Real Estate Center at Texas A&M University, explained, “The housing market continued to be strong in Texas during the third quarter, but high housing demand coupled with shortages in labor and lots continued to restrict new home construction, leaving inventory strained. Fortunately, more Texans are listing their homes on the market as prices have risen, possibly in expectation of rising interest rates in the future.”
Active listings statewide rose 7.6% year-over-year to 102,644 active listings in 2015-Q3. Texas homes also continued to spend less time on the market. In 2015-Q3, Texas homes spent an average of 51 days on the market, a decrease of six days compared to the same quarter of the prior year.
Chairman Kesner concluded, “Another strong buying season is in the record books, which is why the Texas REALTORS® is out there advocating for infrastructure and affordability measures that support this enduring housing demand. We encourage Texans to vote ‘yes’ for both Proposition 1 and Proposition 7 on Nov. 3, both of which are critical to maintaining homeownership affordability in Texas and creating a sustainable infrastructure for our rapidly-growing state.”